British Business Bank COVID-19 loans top £14 billion

By Daniel Lanyon on Wednesday 13 May 2020

Alternative Lending

A whopping £8.3bn via the Bounce Back Loan Scheme, £6bn via the Coronavirus Business Interruption Loan Scheme and a mere £359m Coronavirus Larger Business Interruption Loan Scheme make up the gargantuan number.

British Business Bank COVID-19 loans top £14 billion
Image source: BBB/Keith Morgan

UK firms have benefited from £14bn worth of loans during the crisis delivered by government back lending schemes operated via the British Business Bank, according to data from the bank.

The Chancellor first announced a series of schemes to fund emergency loans go businesses back in March 2020. The first to launch was the Coronavirus Business Interruption Loan Scheme (CBILS), soon followed by the Coronavirus Large Business Interruption Loan Scheme (CLBILS) and most recently the Bounce Back Loans.

The £14bn figure includes 268,000 Bounce Back Loans worth £8.3bn, 36,000 loans worth over £6bn through the Coronavirus Business Interruption Loan Scheme, and £359m through the Coronavirus Large Business Interruption Loan Scheme.

Bounce Back Loans target small and micro businesses, with loans from £2k up to 25 per cent of the business’ turnover with a maximum loan of £50k and are  100 per cent government-backed. They include a six-year term loan at a government set interest rate of 2.5 per cent a year. The government will cover interest payable in the first year.

 CBILS is targeted at smaller firms with a turnover of up to £45m. Invoice finance and asset finance facilities are available from £1k to £5m, while term loans and revolving credit facilities are available from £50k to £5m (the lower limit for these has increased from £1k following the introduction of BBLS).  

CLBILS is for larger businesses with a turnover of more than £45m. It offers term loans, revolving credit facilities, invoice finance and asset finance. Businesses with turnover between £45m and £250m can apply for facilities of up to £25m, while businesses with a turnover of over £250m can apply for facilities of up to £50m.

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